Investment Rarities: Are Silver Prices Set to Skyrocket?

Share Article

Are the recent silver short contract buy-backs by COMEX commercial accounts a precursor to a significant increase in the price of silver? Yes, according to noted silver analyst, Theodore Butler, in an interview about to be published by Investment Rarities, Inc., a Minneapolis-based investment firm.

Are the recent silver short contract buy-backs by COMEX commercial accounts a precursor to a significant increase in the price of silver? Yes, according to noted silver analyst, Theodore Butler, in an interview about to be published by Investment Rarities, Inc., a Minneapolis-based investment firm.

Butler contends the actions will help clear the way for a significant price increase in silver “because the concentrated holdings of silver short contracts, held principally by commercial banks, has been artificially depressing the price of silver.”

Since January, the big COMEX commercial shorts, including J.P. Morgan, have bought 24,000 silver short contracts, the equivalent of 120 million ounces of the precious metal, according to the latest “Commitment of Traders Report” released by the Commodity Futures Trading Commission (CFTC).

“This is one of the biggest short contract coverings in recent years,” Butler notes, “and it wasn’t accidental. In effect, the liquidation caused the price of silver to drop $4 an ounce, which allowed the COMEX commercial banks to temporarily repurchase a large portion of the significant liability they have in silver futures on COMEX at a lower price.” Since the liquidation, silver prices have recovered to their current value of $16 an ounce.

“According to Mr. Butler, this liquidation leaves the silver market in a much healthier position,” says IRI president, Jim Cook. “He believes it’s a good time for anyone who wants to take advantage of it because silver prices could be ready to skyrocket.”

ABOUT THEODORE BUTLER: Theodore Butler is a private investor, trader, and chief analyst at Butler Research, LLC. Originally from New York and now residing in Florida, Butler has over 35 years experience in commodities and futures. Butler has served as a consultant and analyst to Investment Rarities, Inc. for 10 years. Website: http://www.butlerresearch.com .